Report: GM Will No Longer Buy Ads On Facebook

That would be a big move because GM has spent about $10 million in Facebook ads and the news comes just days before Facebook goes public on Friday.

The Journal reports:

"Asked about the move, GM marketing chief Joel Ewanick said the Detroit auto maker 'is definitely reassessing our advertising on Facebook, although the content is effective and important.' Content refers to the unpaid Facebook pages many companies use to promote their products.

"GM, started to re-evaluate its Facebook strategy earlier this year after its marketing team began to question the effectiveness of the ads. GM marketing executives, including Mr. Ewanick, met with Facebook managers to address concerns about the site's effectiveness and left unconvinced advertising on the website made sense, according to people familiar with GM's thinking."

CBS reports that GM is the third-largest advertiser in the U.S. And while $10 million is a small portion of Facebook's $3.7 billion revenue, "losing a high-profile customer like GM could raise fears about other advertisers abandoning the service."